It all comes down to looking at your options before you can even think about buying a house to flip or rent out. Most articles and blogs I can about simply say, you need to have the cash to pay for the house first. Period. Yes, you can have a mortgage, but Dave Ramsey tells you the truth, be realistic and make sure you can actually afford the mortgage in case you don’t have a renter or they don’t pay right away.
Bottom line, have your savings in check and make sure you can afford to buy a property before playing the waiting game and kicking yourself in the ass.
Another great thing that many of us young professionals ALWAYS seem to overlook is expenses like insurance, maintenance, and property tax—yikes. Those definitely didn’t pop into your head right away did they? It’s okay, I didn’t think about it either, that why we are learning and I’m doing all the research for you.
However, Nationwide and Investopedia
are great resources when figuring out how to successfully approach the idea of renting your home. Make sure to have the tenant names and how long you want the lease to last. Don’t forget to come up with your terms beforehand and stick too them!
You want to save money and lower your expenses right? Who doesn’t? That’s why when you used to rent out, especially in college, these rental properties would have you put down a security or damage deposit. Put some math into your work and figure out the rent, rentometer can help give you an idea. And lastly, if you are worried about rent not being paid on time, put down a late payment fee in the agreement contract. If it’s on the lease agreement you are covered there.
Honestly, make sure you have the money to buy a house and plus some to cover any other “random” expenses that may come along. After you have this step figured out, start looking. Once you have found your spot, see what you want to improve. Investopedia offer the suggestion of hiring experts to assist you if you have the funds. When you are ready to rent, just wait. Write up all the restrictions, rules, and agreements you want to set in place. Once this is done look at your competitive pricing options and start marketing you new house!
As real-estate mogul, Grant Cardone says, “Rent what you own, and live where you rent.” In short, it’s a better investment to buy properties and rent them out than to buy a property for yourself.
Until next time!
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